Use of websites and online resources to research insurance products soars: Ernst & Young research reported on by Big4.com

Big4.com has reported on new research from Ernst & Young involving 24,000 insurance customers across 23 countries, including over 1,000 in Australia. Among other things, it highlights suppliers who fail to move rapidly towards a more consumer-friendly business model risk losing business.

In Australia, over two-thirds of consumers will proactively research options when shopping for their next insurance purchase and that’s more than double those who researched their last purchase. The use of online resources to research insurance products is also set in increase dramatically over the next few years, doubling across both general insurance and life and wealth.

Big4.com found that the survey results show that, despite the global financial crisis, Australian consumers have not lost faith in insurers. They trust the industry and overall satisfaction levels are high, averaging 7/10. However the survey also shows that more than half of Australians view the insurance industry unfavourably. Despite this, most are confident that the products purchased are the right ones for their need.

Andrew Taggart, Ernst & Young’s Customer Advisory Leader for Insurance in Australia comments:

“Our survey found that, while of course there are variations in customer attitudes and behaviours around the globe, there are some remarkably consistent underlying themes about what consumers want and where they expect more from insurers,” he says. “In line with global trends, Australian consumers are taking a much more proactive approach to educating themselves about their insurance needs and product options, and there is frustration with the industry’s apparent complexity.”

Globally, Ernst & Young’s research also found consumers would like to see more simple and transparent life and wealth insurance products. This is reflected in the Australia, with well over a third of consumers surveyed saying they find the existing life and wealth products available too complicated.